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While inventory of homes considered affordable or even mid-range in price is incredibly low, I'm seeing a huge supply of expensive homes, 1 million and up, in prime neighborhoods. Brookline, Boston, Newton, Belmont, Wellesley, Weston... Especially Wellesley, which is averaging over 100 days on market and 78 homes over $1 million. (Compared to just 3 under $1 million). Now, I know those are richer towns but it seems like if you are in the market for luxury real estate you've got plenty to choose from. How long can wealthy people keep those homes on the market before cutting prices? Are falling stock prices going to impact home sales at those prices?

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Posted: Fri Feb 12, 2016 4:55 pm GMT Post subject: it is not a bubble until it pops

I am not good at bubble theory, but I am one of many who can not afford 1 million dollar house currently, period.

With the minimum wage targeting $10+ per hour, I believed the ideal situation of the government is, waiting for wage to slowly catching up with the already inflated asset prices. That doesn't mean there will be no 'black swan' appear between ideal and reality goal.

Again, the goal of the policy is to maintain housing market stability, instead of promoting affordability, got it?

Posted: Fri Feb 12, 2016 5:22 pm GMT Post subject: Re: it is not a bubble until it pops

Anonymous wrote:

Again, the goal of the policy is to maintain housing market stability, instead of promoting affordability, got it?

I'm inclined to think that the policy goal is to enrich the FIRE industries - i.e., welfare for Wall Street. That's the end result of it, anyway. If stability were the goal, they would presumably want to lean against bubbles as bubbles increase instability. Policy instead contributed to the great housing bubble last decade.

The Policy promoted individual spending by inflating housing market back from 2002 to 2006. Someone needed to boost up economy, in order to justify financing a war. A lot of financial aftershocks we were experienced and still experiencing sourced from that mother of all evils.

I live in Boston and don't know anything about the suburban market.
That's a lot of money. Is there not good inventory in that range?

There's not a lot in that range period, good or bad. What does exist is usually not good. The situation gets better the further you're willing to commute, but I guess I haven't expanded my search far enough for that to help yet.

My wife and I's budget is $550K. One income at $134K annual salary. Hard part is coming up with 20%. We might be able to up our budget if we could afford 20% DP on those values. Takes a long time to save $120K DP.

My wife and I's budget is $550K. One income at $134K annual salary. Hard part is coming up with 20%. We might be able to up our budget if we could afford 20% DP on those values. Takes a long time to save $120K DP.

I've got the opposite problem (I'm probably a lot older). I can make a big down payment, but income can fluctuate year to year, and banks appear to loan based on income once you pass 20%. I want to wait for viable inventory to materialize but that introduces the risk that I'll have an off year for income.

In decent towns around boston, $900k is the starting price for houses that start to look appealing. I am totally disgusted by the current home price. But looks like home price would get more expensive in the near future. Usually tide turns after election, so let's revisit this at the year end.

I am looking for a condo, as I am a single woman and not interested in owning/paying for/taking care of a single family house without a partner. Would also consider a two family with a partner but I hear those are hard to come by and are quite expensive. Originally I thought I would like the condo to be under $300K but the reality is there is very little in that price range, so I've increased to $400K.

Single family house budget (hypothetically speaking with a partner) would probably be under $650K.

It seems this upward trajectory in prices cannot continue without a correction at some point.

I am looking for a condo, as I am a single woman and not interested in owning/paying for/taking care of a single family house without a partner.

Be careful. I bought a condo in 2006 and short-sold in 2011.. remember you have no control over who else buys a condo in your building. Its essentially a business partnership where the business partner can sell his/her interest at any time and be replaced by an unknown quantity. I had TERRIBLE neighbors move above me. I have friends who own half a two family in Belmont, and their upstairs neighbor rents to a VERY crazy individual.

Condos are fine but tend to be harder to sell in the future. That's why we are restricted to SFH.